Pollensa property report 2007

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Pollensa Property

Generations of visitors have been enjoying the delights of Pollensa and Puerto Pollensa for many years. The first hotel to open on the island in 1907 still stands today in Pollensa’s town square, where there is life all year round and particularly on Sundays when the market is in full swing.

This area has a rich history, culture and architecture of its own, which is celebrated annually with its music festival held in the Cloisters of the Santo Domingo church and the famous traditional Moors & Christians “fiesta” held every August. The surrounding area includes Cala San Vicente, and villages down to Campanet.

Puerto Pollensa is a popular family resort with its famous pinewalk promenade and beautiful views across the Bay and to the mountains. It has excellent sailing and watersports facilities and offers a good social calendar alongside these activities.

The Buyer

The market is dominated by the British in Puerto Pollensa, which accounts for 80% of the sales, with Germans (15%) and the Spanish (5%). These clients are generally looking for a holiday property and will, on average, spend approximately two weeks of the year there. The most requested properties are apartments, fincas, villas and plots.

In Pollensa there is a market shift with the British accounting for approximately 45% of the market, Spanish make up 25%, Germans 18% and the rest is split between Scandinavians, Irish, Belgians, Russians and French. The most requested properties are villas, fincas and plots.

Property Values

In Puerto Pollensa the price range is from around €200,000 to 2.5 million and increases last year were about 12%.

In the area around Pollensa town prices start from approximately €220.000 to 2.2 million which increased last year by around 12-17% and anything up to 23% for plots.

In the town and the port the demand for property has increased considerably since the completion of the new motorway, which has halved the journey time from Palma and this in turn has pushed up prices by approximately 12%.

Rental Market

The rental market in this area is one of the largest on the island and certainly very lucrative. Approximately 50-70% of all clients are interested in letting their property. In high season rental yields for a top villa can average €4,000 euros per month. However, clients wishing to rent out their property for short term holiday lets must seek the advice of a lawyer as the local government has recently changed legislation and all holiday rentals must be licensed.

Tip for Investors in 2007

Property around Campanet represents good value. The new motorway and new rail link to Sa Pobla means much easier access and will open up the market. In the Port area, apartments in the centre are still well priced, villas in Siller and Gommar (just outside the Port) are also worth investigating. Plots in Gommar still represent good value. The beautiful peninsula of Formentor will also experience a revival when its famous Hotel Formentor re-opens after a complete refurbishment.

Pollensa Property Prices

Villa with views 4 350 1,600,000 55% 13% 4,500 2,300
Villa no views 4 350 900,000 45% 11% 3,800 2,400
Apartment with views 2 100 300,000 30% 12% 900 700
Apartment no views 2 100 240,000 35% 10% 700 600
Country house 3 350 2,100,000 60% 19% 2,800 1,500
Townhouse 3 180 680,000 65% 17% 1,000 600
Plot price €/m2 385 80% 23%

Puerto Pollensa Property Prices

Villa with views, 4 bed, 350m2 1.850.000 8-12% 4- 8
Villa no views, 4 bed, 350m2 1.400.000 6-8% 6 – 12
Apartment with views, 2 bed, 100m2 580.000 6-8% 6 – 12
Apartment no views, 2 bed, 100m2 210.000 2% 4- 8
Country house, 3 bed, 350m2 2.200.000 10% 4- 8
Townhouse, 3 bed, 180m2
Plot m2 (rustic / urban) 45/375 10-12% 4- 8

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